Record high petrol prices set to kick in at midnight. This is what to expect

Huge petrol price increase - Newcastillian Online News
"With Newcastillians already tightening their budgets, motorists will now have to brace themselves for record high petrol prices coming into effect as of midnight, 7 April 2021."

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With Newcastillians already tightening their budgets, motorists will now have to brace themselves for record high petrol prices coming into effect as of midnight, 7 April 2021.

According to the Department of Minerals Resources, people can expect the following price adjustments:

  • Petrol (both 93 ULP and LRP): will be increasing by 95 cents per litre on the coast, while it will increase by R1 per litre inland. 
  • Diesel will be increased by between 65 and 63 cents per litre.

The department explains numerous factors contribute to the adjustment in fuel prices, such as the average Brent Crude Oil price increasing from 61.10USD to 64.00USD per barrel during the period under review.

In a recent statement, the Government entity stated, “The dramatic price fluctuations are attributable to a variety of events; including low US crude oil inventory figures, the expected increased economic activity in the US due to the approval of their economic stimulus and a vessel stuck in the Suez Canal causing a delay for all cargo containers including oil tankers.”

Concerning finished products, the Department of Mineral Resources explains the movement in international prices of petrol, diesel and illuminating paraffin increased by about 61.72 c/l, 27.22 c/l and 25.26 c/I, respectively, during the period under review.

The South African Rand also contributed to the price hike after the Rand depreciated, on average, against the US Dollar (from 14.76 to 14.95 Rand per USD) during the period under review. This led to higher contributions to the Basic Fuel Prices of petrol, diesel and illuminating paraffin by about 10.00 c/l.

With the fuel prices rising tremendously as of midnight, be sure you gear up for a long and arduous journey ahead.

Share your thoughts with us in the comment section below. 

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